YSX TECH. CO., LTD Announces Financial Results for Fiscal Year 2025
Rhea-AI Summary
YSX TECH. CO., LTD (NASDAQ:YSXT), a Chinese provider of business solutions for insurance companies, reported its fiscal year 2025 results with mixed performance. Total revenue increased 22.0% to $71.5 million, primarily driven by auto insurance aftermarket value-added services, which grew 39.1% to $63.4 million and represented 88.7% of total revenue.
The company saw significant growth in service volume, with auto insurance aftermarket calls increasing 24.6% to 4.72 million. Notably, driving risk screening services surged 2,978% in volume. However, net income declined 11.9% to $4.0 million, while gross margin contracted to 10.3% from 11.9% in FY2024. The company completed its IPO on Nasdaq in December 2024, raising $5.75 million including the over-allotment option.
Positive
- None.
Negative
- Net income declined 11.9% to $4.0 million
- Gross margin contracted to 10.3% from 11.9%
- Operating expenses increased 31.9% to $2.6 million
- Software services revenue decreased 49.5% to $0.6 million
- Scenario-based services revenue declined 36.8% to $7.4 million
News Market Reaction
On the day this news was published, YSXT declined 0.33%, reflecting a mild negative market reaction. Argus tracked a peak move of +17.7% during that session. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $287K from the company's valuation, bringing the market cap to $87M at that time.
Data tracked by StockTitan Argus on the day of publication.
GUANGZHOU, China, Aug. 01, 2025 (GLOBE NEWSWIRE) -- YSX TECH. CO., LTD (the “Company,” “our,” “us” or “YSXT”), a Cayman Islands exempted company that, through its variable interest entities in China, provides comprehensive business solutions mainly for insurance companies and brokerages in China, today announced its financial results for the fiscal year ended March 31, 2025.
Key Financial Metrics for Fiscal Year 2025
- Total revenue grew by approximately
22.0% to approximately$71.5 million in the fiscal year ended March 31, 2025 from approximately$58.5 million in the fiscal year ended March 31, 2024, driven by expanded service contracts with insurance companies and brokerages. - Revenue generated from auto insurance aftermarket value-added services rose approximately
39.1% to approximately$63.4 million in fiscal year 2025 from approximately$45.6 million the fiscal year ended March 31, 2024, accounting for approximately88.7% of our total revenue, and reflecting an approximately24.6% increase in service volume (approximately 4.72 million calls) from fiscal year 2024 to fiscal year 2025 and an approximately11.7% increase in average revenue per call from fiscal year 2024 to fiscal year 2025. - Driving risk screening service volume experienced an approximately 2,
978% increase, and the Company recorded gains in both volume and revenue from providing safety inspection and check services, and designated-driver and rescue services, with only a modest pullback in vehicle maintenance related services from fiscal year 2024 to fiscal year 2025. - Gross profit rose approximately
6.1% to approximately$7.39 million in the fiscal year ended March 31, 2025 from approximately$6.96 million in the fiscal year ended March 31, 2024, while gross margin narrowed to approximately10.3% in the fiscal year ended March 31, 2025 from approximately11.9% in the fiscal year ended March 31, 2024. - Net income declined approximately
11.9% to approximately$4.0 million in the fiscal year ended March 31, 2025 from approximately$4.6 million in the fiscal year ended March 31, 2024.
Mr. Jie Xiao, our CEO and chairman of the board of directors, stated: “We are pleased to deliver strong top-line growth in fiscal year 2025, led by our core auto insurance aftermarket value-added services. We believe the approximately
| For fiscal years ended March 31 | |||||
| In USD Millions, except percentages | 2025 | 2024 | Variances | ||
| Amount | Amount | % | |||
| Total revenue | 71.5 | 58.5 | 22.0 | ||
| Cost of revenue | 64.1 | 51.6 | 24.2 | ||
| Gross profit | 7.4 | 7.0 | 6.1 | ||
| Income from operations | 4.8 | 5.0 | (4.0) | ||
| Net income | 4.0 | 4.9 | (11.9) | ||
Financial Results for Fiscal Year 2025
Total revenue increased by approximately
- Revenue from auto insurance aftermarket value-added services, accounting for approximately
88.7% of our total revenue, grew by approximately$17.8 million , or approximately39.1% to approximately$63.4 million in the fiscal year ended March 31, 2025 from approximately$45.6 million in the fiscal year ended March 31, 2024, due to an increase of approximately24.6% in the service volume of auto insurance aftermarket value-added services to approximately 4.7 million service calls in the fiscal year ended March 31, 2025 from approximately 3.8 million in the fiscal year ended March 31, 2024. Average revenue per call also increased by approximately11.7% from the fiscal year ended March 31, 2024 to the fiscal year ended March 31, 2025.- In particular, growth in both service volume and revenue was driven by the following factors: i) vehicle driving risk screening services recorded approximately 2.6 million calls in the fiscal year ended March 31, 2025, an approximately 2,
978.4% increase compared to 85,706 calls in the fiscal year ended March 31, 2024, and an approximately$32.0 million , or approximately 1,236.0% , increase in revenue compared to approximately$2.6 million in the fiscal year ended March 31, 2024; and ii) safety inspection and check services, and designated-driver and rescue services also saw volume increases of 24,170 calls and 18,921 calls, respectively, with corresponding revenue growth of approximately$172,970 and$65,842 , respectively, in the fiscal year ended March 31, 2025 compared to 90,108 calls and 10,928 calls, respectively, for the same services in the fiscal year ended March 31, 2024. - Such increases were partially offset by decreases in service volume and revenue for vehicle maintenance related services, which decreased by approximately
46.3% and35.9% , respectively, in the fiscal year ended March 31, 2025 as compared to fiscal year ended March 31, 2024.
- In particular, growth in both service volume and revenue was driven by the following factors: i) vehicle driving risk screening services recorded approximately 2.6 million calls in the fiscal year ended March 31, 2025, an approximately 2,
- Revenue from providing scenario-based services, accounting for approximately
10.4% of our total revenue, decreased by approximately$4.3 million , or36.8% , from approximately$11.8 million in the fiscal year ended March 31, 2024 to approximately$7.4 million in the fiscal year ended March 31, 2025 due to a reduction in the average service price. - Revenue from software services, accounting for approximately
0.9% of our total revenue, decreased by approximately$0.6 million , or approximately49.5% , from approximately$1.2 million in the fiscal year ended March 31, 2024 to approximately$0.6 million in the fiscal year ended March 31, 2025, with a decrease in customer numbers.
Cost of revenue increased by approximately
Gross profit rose by
Total operating expenses increased by
Net income decreased by
Cash and cash equivalents were approximately
On December 19, 2024, YSX TECH. CO., LTD successfully completed its initial public offering and commenced trading on Nasdaq Capital Market on December 18, 2024, raising total gross proceeds of approximately
About YSX TECH. CO., LTD
Primarily operating in Xinjiang province and Guangdong province in China, YSX TECH. CO., LTD is a holding company incorporated in the Cayman Islands that, through its variable interest entities in China, provides comprehensive business solutions mainly for insurance companies and brokerages in China. The Company possesses in-depth knowledge of the Chinese insurance industry accumulated from years of servicing customers, and specializes in auto insurance aftermarket value-added services, software development and information technology services, as well as other scenario-based customized services, such as products and customer development services. For more information please visit: https://ir.ysxtechcay.com and https://www.ysxnet.com.
Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions and other factors discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For more information, please contact:
At the Company
marketing@ysxnet.com
+86 (20) 2984 2002
Investor Relations
WFS Investor Relations Inc.
Janice Wang
Email: services@wealthfsllc.com
Phone: +86 13811768599
+1 628 283 9214
| YSX TECH. CO., LTD AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | ||||||||
| As of March 31, | ||||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash | $ | 7,105,085 | $ | 4,283,794 | ||||
| Short-term investment | - | 2,103,762 | ||||||
| Accounts receivable, net of | 17,606,279 | 9,163,752 | ||||||
| Accounts receivable, related parties | 5,381,535 | 2,871,872 | ||||||
| Advances to vendors | 9,400,197 | 8,123,120 | ||||||
| Due from related parties | 198,611 | 2,197 | ||||||
| Deferred initial public offering costs | - | 118,103 | ||||||
| Other current assets | 929,680 | 848,185 | ||||||
| Total current assets | 40,621,387 | 27,514,785 | ||||||
| Non-current Assets | ||||||||
| Property and equipment, net | 194,878 | 54,486 | ||||||
| Right-of-use operating lease assets | 144,535 | 224,835 | ||||||
| Deferred tax assets | 140,377 | 76,821 | ||||||
| Total non-current assets | 479,790 | 356,142 | ||||||
| TOTAL ASSETS | 41,101,177 | 27,870,927 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Short-term bank loans | 4,131,354 | 1,563,452 | ||||||
| Current portion of long-term loans | 578,775 | 138,481 | ||||||
| Accounts payable | 2,258,129 | 1,525,192 | ||||||
| Deferred revenue | 1,007 | 14,099 | ||||||
| Taxes payable | 3,274,881 | 2,579,976 | ||||||
| Due to related parties | 141,235 | 417,557 | ||||||
| Operating lease liabilities, current | 93,719 | 83,477 | ||||||
| Accrued expense and other current liabilities | 1,651,681 | 883,805 | ||||||
| Total current liabilities | 12,130,781 | 7,206,039 | ||||||
| Operating lease liabilities, non-current | 66,926 | 160,706 | ||||||
| Long-term loans | 1,281,574 | 484,684 | ||||||
| Long term loan, related party | - | 1,384,811 | ||||||
| Total non-current liabilities | 1,348,500 | 2,030,201 | ||||||
| Total liabilities | 13,479,281 | 9,236,240 | ||||||
| Commitment and contingencies | ||||||||
| Shareholders' equity | ||||||||
| Ordinary shares, | ||||||||
| Class A ordinary shares, | 2,226 | 2,082 | ||||||
| Class B Ordinary shares, | 118 | 118 | ||||||
| Additional paid-in capital | 10,420,096 | 5,346,674 | ||||||
| Statutory reserve | 908,214 | 741,584 | ||||||
| Retained earnings | 17,575,571 | 13,720,353 | ||||||
| Accumulated other comprehensive loss | (1,284,329) | (1,176,124) | ||||||
| Total shareholders' equity | 27,621,896 | 18,634,687 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 41,101,177 | $ | 27,870,927 | ||||
| YSX TECH. CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||
| For the years ended March 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Revenues | ||||||||||||
| Revenues | $ | 51,558,098 | $ | 46,618,820 | $ | 42,132,930 | ||||||
| Revenue, related parties | 19,894,638 | 11,927,909 | 7,100,617 | |||||||||
| Total revenue | 71,452,736 | 58,546,729 | 49,233,547 | |||||||||
| Cost of revenues | ||||||||||||
| Cost of revenue | 64,066,148 | 51,583,802 | 41,700,199 | |||||||||
| Cost of revenue, related parties | - | - | 382,098 | |||||||||
| Total cost of revenue | 64,066,148 | 51,583,802 | 42,082,297 | |||||||||
| Gross profit | 7,386,588 | 6,962,927 | 7,151,250 | |||||||||
| Operating expenses: | ||||||||||||
| Selling and marketing | 121,681 | 114,300 | 117,032 | |||||||||
| General and administrative | 2,225,447 | 1,616,980 | 1,116,376 | |||||||||
| Research and development | 240,052 | 229,934 | 254,246 | |||||||||
| Total operating expenses | 2,587,180 | 1,961,214 | 1,487,654 | |||||||||
| Income from operations | 4,799,408 | 5,001,713 | 5,663,596 | |||||||||
| Other income (expenses) | ||||||||||||
| Interest expense | (159,298) | (139,752) | (83,543) | |||||||||
| Interest income | 1,100 | 1,468 | 964 | |||||||||
| Investment income | 20,295 | 33,013 | 31,506 | |||||||||
| Other income | 65,021 | 218,697 | 338,951 | |||||||||
| Other non-operating expenses, net | (27,257) | (11,400) | (11,677) | |||||||||
| Total other income (expense), net | (100,139) | 102,026 | 276,201 | |||||||||
| Income before income tax provisions | 4,699,269 | 5,103,739 | 5,939,797 | |||||||||
| Income tax provision | 677,421 | 537,771 | 1,035,247 | |||||||||
| Net income | 4,021,848 | 4,565,968 | 4,904,550 | |||||||||
| Other comprehensive income | ||||||||||||
| Foreign currency translation adjustment | (108,205) | (751,042) | (765,836) | |||||||||
| Comprehensive income | $ | 3,913,643 | $ | 3,814,926 | $ | 4,138,714 | ||||||
| Earnings per share- basic and diluted | $ | 0.18 | $ | 0.21 | $ | 0.22 | ||||||
| Weighted average number of ordinary shares - basic and diluted | 22,401,712 | 22,000,000 | 22,000,000 | |||||||||
FAQ
What were YSXT's key financial results for fiscal year 2025?
How much did YSXT's auto insurance aftermarket services grow in FY2025?
When did YSXT complete its IPO and how much did it raise?
What caused YSXT's profit decline in FY2025?
How much cash does YSXT have as of March 31, 2025?
